5 Best Dividend Stocks to Own in Case the AI Trade Ends

June 10, 2026

The artificial intelligence (AI) boom has defined the stock market since early 2023. AI and other technology stocks have been the big winners more often than not over that time, but the AI trade won’t work forever. Eventually, the market will zig and zag as it tends to, and new stocks in other industries will have their moment.

Nobody knows when that time may come, which is why it’s so important for long-term investors to diversify their portfolios. A portfolio of 50 or so high-quality companies across all the market sectors can build serious wealth over time and endure the market’s inevitable unpredictability. That could mean adding some dividend stocks from non-tech sectors to balance things out.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

Here are five blue chip dividend stocks to consider buying and holding in case the AI trade ends.

A chalkboard with various sketches and the word "dividends."
Image source: Getty Images.

1. Realty Income

Real estate is a classic income-generating investment. Realty Income (NYSE: O) is a leading real estate investment trust (REIT) that acquires and leases real estate and distributes most of its cash profits to investors as dividends. Realty Income specializes in retail properties, such as restaurants and convenience stores, but has expanded into other property types in recent years, including casinos and industrial properties.

Realty Income pays a monthly dividend, which is somewhat uncommon, and the company has increased the payout for more than 30 consecutive years. Raising dividends during recessions and the COVID-19 pandemic speaks to the company’s resilient rental income streams. The stock currently yields 5.3%, and that dividend can do wonders over time when investors reinvest it for more shares.

2. McDonald’s

Investors won’t find a more iconic franchise business than McDonald’s (NYSE: MCD). The world’s largest restaurant chain has more than 45,000 locations in more than 100 countries, which generate steady revenue for the company through royalties and franchise fees each location pays. Consumers tend to associate the brand with value, so McDonald’s tends to hold up better than most restaurants during recessions.

McDonald’s continues to pay and increase its dividend to shareholders. Now with 49 consecutive annual dividend hikes, McDonald’s is on the cusp of becoming a Dividend King, a company with at least five decades of uninterrupted dividend growth. Investors looking for a simple business that continues to churn out steady growth should take a close look here.

3. Clorox

Home products are one of the most underrated but consistent market segments. The Clorox Company (NYSE: CLX) is among a handful of companies that sell some of the most trusted consumer brands, including Clorox, Purell, Glad, Hidden Valley Ranch, Burt’s Bees, Brita, and Kingsford. These are products people tend to buy and use regardless of the economy, and they tend to buy these brands because they know them.

Clorox’s current dividend growth streak sits at 48 years, making it another soon-to-be Dividend King. Since the pandemic, Clorox has struggled with high costs and a cybersecurity breach. The stock price has tumbled, and the dividend yield is up to 5.2%. But Clorox still earns enough to cover its dividend, and the recent Gojo acquisition (Purell) should boost earnings growth.

4. Home Depot

Housing is one of the U.S. economy’s prominent consumer markets, which has helped make Home Depot (NYSE: HD) one of the world’s most successful retailers. People tend to invest in their homes, and that includes the maintenance and upkeep virtually every house needs. Home Depot stores blanket the United States, which has helped the company adapt to e-commerce by using its stores as a distribution network.

Home Depot returns much of its cash profits to shareholders through dividends and stock buybacks, a formula that has produced life-changing total investment returns over its lifetime. The stock is down right now due to a slow housing market and consumers struggling with rising living expenses. While housing may fluctuate, it’s arguably an evergreen market. Investors should look into buying the stock on its current dip.

5. Medtronic

Healthcare is another forever market. People always need care, and there’s an ongoing pursuit of newer and better ways to treat patients. Medtronic (NYSE: MDT) is one of the world’s leading healthcare companies, with a broad range of medical products and equipment across cardiovascular, neuroscience, and general surgery applications. Medtronic’s decades of success have made the stock a soon-to-be Dividend King, poised for its 50th consecutive annual dividend increase next year.

The company recently spun off its diabetes business segment as MiniMed to reignite growth and entered the robotics-assisted surgery market in the U.S. after its Hugo platform received FDA approval in December 2025. Shares offer a starting dividend yield of 3.5% and trade at less than 14 times 2026 earnings estimates. Analyst estimates of 6% to 7% annualized earnings growth over the coming years make Medtronic a bargain at this price.

Should you buy stock in Realty Income right now?

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Justin Pope has positions in Clorox and McDonald’s. The Motley Fool has positions in and recommends Home Depot, Medtronic, and Realty Income. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald’s and short January 2028 $340 calls on McDonald’s. The Motley Fool has a disclosure policy.

5 Best Dividend Stocks to Own in Case the AI Trade Ends was originally published by The Motley Fool

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